Investors need to make prudent decisions based on financial literacy to get higher returns on their investments in the capital market, experts said at a webinar on Thursday.
They also urged the investors to avoid emotion- and rumour-based trading while making investments in the market.
The Chittagong Stock Exchange (CSE) organised the webinar on 'Awareness on Savings and Investment for the Students' to mark the World Investor Week 2020.
Md Abdul Halim, a commissioner of the securities regulator, attended programme as the chief guest.
Mr Halim said students can save a portion of the money they receive from their parents to meet expenses of their education, transportation and meals.
"Savings help one to overcome any crisis that may arise in the future. Students have the scope of learning financial literacy during their study at the university level," he said.
There are many investment instruments in the market and an investor need to choose the right one, said Mr Halim.
He also expressed the hope the capital market would be enriched with the participation of a large number of investors having financial literacy.
"Half of the households in the USA are somehow involved in their stock exchanges. But in our country, the level of involvement is very low," Mr Halim said.
He also said there is a huge scope of expanding the capital market by ensuring households' involvement at a large scale.
CSE Chairman Asif Ibrahim said an investor will have to realise the risk of investments made in the capital market.
"Investors must lay out a prudent investment plan. Financial literacy is the key to their success in the capital market," he said.
He also laid importance on long-term investments and investment analysis to secure returns from the capital market.
Dr Mohammad Saleh Jahur, a professor of Accounting and Finance at Chittagong University, delivered the keynote speech at the webinar.
In his speech, Prof Jahur said earnings from investments are not an easy task.
"Investment must be rational. There is no place of emotion and irrationality when it comes to investments in the capital market," he said.
Right investment decision must be taken based on financial literacy, he added.
"Regulatory environment and financial literacy help an investor make the right investment decision," Prof. Jahur said.
CSE Managing Director Mamun-Ur-Rashid also spoke at the webinar.
mufazzal.fe@gmail.com